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2019 (10) TMI 1374 - AT - Income TaxMaintainability of appeal - low tax effect - HELD THAT - Admittedly, the tax effect in the Departmental Appeal is less than ₹ 50 lakhs. Vide Circular No.3/2018 Dated 11th July, 2018 issued by CBDT under section 268A of the I.T. Act, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of ₹ 20 lakhs. The CBDT Vide Circular No.17/2019 Dated 08.08.2019 amended the earlier Circular No.3/2018 (supra) whereby it has been directed that monetary limit for filing the Departmental appeal in Income Tax Cases may be enhanced further through this amendment in para-3 of the Circular mentioned above and accordingly, the monetary limit for filing the appeal before the Appellate Tribunal have been enhanced to ₹ 50 lakhs. Since Circular No.17/2019 Dated 08.08.2019 have been issued to amend its earlier Circular No.3/2018 (supra), therefore, all the conditions of earlier Circular No.3/2018 shall apply accordingly. D.R. in view of the above Board s Circulars did not press the Departmental Appeal. The case of the Department would not fall in the exceptions provided in the above Board Circulars.
Issues: Jurisdiction of Appellate Tribunal based on monetary limits set by CBDT Circulars.
The judgment by the Appellate Tribunal ITAT Delhi pertains to a Departmental Appeal against the Order of the Ld. CIT(A)-V, New Delhi, for the A.Y. 2011-2012. The key issue in this case revolves around the tax effect in the Departmental Appeal being less than the monetary limits set by CBDT Circulars. The Circular No.3/2018 issued by CBDT under section 268A of the I.T. Act established a monetary limit of ?20 lakhs for filing appeals before the Tribunal. Subsequently, Circular No.17/2019 amended the earlier circular, increasing the monetary limit to ?50 lakhs. The Department, in compliance with these Circulars, did not press the Departmental Appeal due to the tax effect falling below the specified limit. The Tribunal held that the appeal was not maintainable as it contravened the Board's instructions, leading to the dismissal of the Department's appeal. In analyzing the judgment, it is evident that the primary issue at hand was the applicability of the monetary limits prescribed by the CBDT Circulars on the jurisdiction of the Appellate Tribunal. The Circulars, specifically Circular No.3/2018 and Circular No.17/2019, set monetary thresholds for filing appeals before the Tribunal, with the latter circular increasing the limit to ?50 lakhs. The Tribunal emphasized the retrospective application of these Circulars to pending appeals, ensuring uniformity in the treatment of cases falling below the specified tax limits. By adhering to the Circulars, the Department chose not to press the appeal, acknowledging that it did not meet the prescribed monetary threshold, as highlighted in the Circulars. This adherence to the Circulars by the Department was crucial in the Tribunal's decision to dismiss the appeal, as it was deemed non-maintainable due to being in contravention of the Board's instructions. The judgment underscores the significance of CBDT Circulars in determining the maintainability of appeals before the Appellate Tribunal, particularly concerning the monetary limits set for filing Departmental Appeals. The Circulars serve as guidelines for the Department and the Tribunal, ensuring consistency and adherence to specified tax limits. The Tribunal's decision to dismiss the appeal in this case was a direct consequence of the Department's acknowledgment of not meeting the prescribed monetary limit, as outlined in the Circulars. This adherence to the Circulars reflects the importance of regulatory compliance and the impact it has on the jurisdiction of the Tribunal. Ultimately, the judgment highlights the critical role of CBDT Circulars in shaping the legal landscape and governing the filing of appeals within specified monetary thresholds before the Appellate Tribunal.
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